1. Field of the Invention
The present invention relates generally to a data processing system. More specifically, aspects of the present invention provide for a method, computer program product and data processing system for dynamically managing a supply chain by dynamically analyzing shifting demand for personalized parts.
2. Description of the Related Art
Products now have the ability to be customized by the firmware such that the same piece of hardware can behave differently. For example a 2.9 GHZ (gigahertz) processor may have firmware loaded so that the processor may run at slower speeds. Supply chain has seen a growth in a type of hardware personalization that reduces the number of components to be planned and procured. Hardware personalization is a process that converts a piece of hardware from a specific part number to be a different part number by personalizing the device with firmware or microcode. Personalizing, or personalization, is modifying the internal operations of a part with software to conform with a particular specification. Re-personalizing, or re-personalization, is personalizing a part that has previously been personalized in order to form a different personalized part. For example, a 2.9 GHZ processor may have firmware loaded so that it operates as a 2.65 GHZ processor. This may be done in order to buy common parts for multiple processor points without purchasing many different processor part numbers. The change may be simply to down stroke higher processor points to the slower speed in order to meet demand during a supply shortage. Another example of hardware personalization is taking a 2 GB (gigabyte) Memory DIMM (dual in-line memory module), priced specifically for a UNIX platform and converting the 2 GB Memory DIMM to a 2 GB Memory DIMM for an iSeries™ platform such that the DIMMS operate as functionally two different part numbers and are not compatible with each other. Additionally, the DIMMS can be priced separately from each other, as they are two different parts that perform differently.
The reduction in planning and procurement is due to the ability to purchase one generic part number capable of representing many personalized part numbers. The problem that arises in this type of supply chain system is that once a product has been personalized, the product requires a new part number and the product is no longer able to be used as-is for other order demands. Shifting demands, exaggerated by high order skew and shorter cycle times, make it very difficult to maintain a supply match without purchasing excess inventory.
Typically, a supply chain uses demand reports that drive the manufacturing team to personalize generic parts to specific parts. As the order demand shifts, the supply chain commonly reacts by purchasing additional generic parts for personalization. The purchasing of additional generic parts increases inventory carrying costs and also impacts cycle time. Generally, the time required to procure and pull additional generic parts is longer than the time required to re-personalize a part. Typically, a materials replenishing plan or materials requirements plan (MRP) system is used to identify the generic part demand, as well as to identify the necessary quantity of each personalized part, based on current orders. A major challenge is that MRPs generally run weekly or, at best, nightly. In contrast, demand for a particular generic or personalized part can shift throughout the course of a single business day. Additionally, MRP output does not provide instruction on what or when to re-personalize certain inventory in order to make up for shortages in other inventory. This type of logical decision can only be made at the manufacturing assembly level in real time.
There is a rising tide of hardware personalization occurring in the supply chain in order to maximize the throughput of suppliers and minimize the costs to procure parts. At the same time, the supply chain has seen decreasing cycle times, as demanded by the customers, with an order book that consistently changes with spikes in demand, changes in order configurations, and product cancellations. The changes in the order books can occur nearly continuously throughout each production day. Generally, the higher the level of configuration offered for a product, the more variability and opportunity for changes in the order demand. Under current supply chain dynamics, there is little time to react to the demand changes in the standard, traditional fashion, that is, ordering more parts. A new solution is required.
Therefore, it would be beneficial to have a method and process that automatically corrects or adjusts personalized inventory, thereby maximizing inventory use while reducing associated cost.